Business Activities that Companies are Allowed to Conduct in JAFZA

It is one of the most well-known free zones in the country. It houses a figure of more than 7,000 international companies. Some of these companies are Fortune Global 500 companies. JAFZA is one of the contributors of Foreign Direct Investment (FDI) into the UAE.

Business setup in JAFZA continues to be rampant, and JAFZA, in turn, continues to meet the demands of businessmen with warehouses, showrooms, offices, and on-site residences. The top-of-the-line service and facilities that JAFZA offers are just some of the reasons why business setup in JAFZA remains to be one of the on-demand company formations in UAE.

Formation Types in JAFZA

FZCo

This company formation type is basically a Limited Liability Partnership. Just like the latter, the company’s liabilities are only limited to the company’s assets. The owners’ personal assets are secured.

If an investor decides to choose this type, JAFZA allows from 2 to 50 shareholders for their company to be formed. They can be either individual, companies, or a combination of both.

FZE

If a business owner would like to own a company on their own, FZE is a type of formation that JAFZA allows to be conducted in the free zone with one shareholder. However, just like the FZCo, it can be either an individual or a company. The company’s liabilities are limited to its assets as well, and the owner’s assets are protected.

PLC

Public Limited Company or more commonly known as PLC is a type that lists its shares on stock exchange wherein the public can subscribe to it. A PLC is considered to be that of a person because it has certain rights and privileges and even its own persona that is separate from its owners or shareholders. JAFZA allows two or more shareholders for a company that wants to form as a PLC.

Branch

A branch is simply an extension of its parent company. It is a legal entity that can be formed inside JAFZA. If a company is outside JAFZA, they can establish a branch in the free zone. There are certain requirements that they should meet, such as the parent company should completely own the branch, it should have the same nature of the business, and it should be under the same name as the parent company.

Business Activities That are Allowed in JAFZA

The license that is needed to be obtained by a company depends on the business activity that they will operate. The three main categories of activity in JAFZA are trading, service, and industrial.